Stench of corruption lingers over New Europe

Times (London)
December 03, 2003 

Stench of corruption lingers over New Europe
>From Roger Boyes in Berlin 

THE tangled relationship between Eastern Europe's political leaders
and organised crime has become a pressing issue for the European Union
as politicians across the region face accusations of corruption.

In Warsaw, Lew Rywin, the film producer whose credits include The
Pianist and Schindler's List, was led in handcuffs into court
yesterday to face charges of attempted bribery. His trial could lead
to the fall of his political ally, Leszek Miller, the Polish Prime
Minister.

The Lithuanian parliament began an emotional debate on a report
linking President Paksas with a shadowy Russian businessman. That
debate yesterday could trigger the President's resignation, or
sacking.

Last week Vladimir Spidla, the Czech Prime Minister, was questioned
about the Government's role in authorising the building contract for a
motorway without throwing it open to competitive tender.

The Slovakian parliament has decided to lift parliamentary immunity
from Gabriel Karlin after an envelope containing £10,000 was found the
deputy's briefcase. Mr Karlin claims that he had been sitting in the
bank, left his briefcase to go to the lavatory and became aware of the
envelope only when he was stopped as he left the building.

The EU is becoming aware that it is about to inherit a serious problem
when post-communist states from the Baltic to the Adriatic become full
members next May.

"This is about the overlap of politics, business and crime," Jürgen
Roth, the author of several books on the so-called Russian Mafia,
including the bestselling Gangsters from the East, said.

The former communist states have been tainted by corruption since
bribery and the black market became a means of survival in over-
regulated, centrally planned economies.

To qualify for EU membership in less than six months, all the new
entrants have committed themselves to independent judiciaries and
tough money-laundering rules. While some of those countries still have
crooked courts and are awash with suspect money — between £1.7 billion
and £5.2 billion is laundered each year in Poland, according to the
taxman — societies have generally become more aware and more
transparent. The problem is that the political class, with its roots
in the old communist party elite, has been quietly subverted by a
decade of rampant corruption.

The Czech and Slovak cases may reflect an encouraging development.
Anti-corruption squads have lost their fear of questioning ministers
and parliaments are no longer shy about pointing a finger at a
possibly corrupt colleague. During membership negotiations, the EU
insisted on independent police forces and a free press.

But the corruption affairs in Poland and Lithuania should act as a
warning signal to the EU, because they highlight notable democratic
shortcomings. In Lithuania, Mr Paksas is accused of speeding up the
citizenship application of Yuri Borisov, the Russian businessman, and
allowing him to gain influence in certain strategic areas. The
President denies the charge, but the fact remains that Mr Borisov was
a big election campaign contributor to Mr Paksas.

In Poland, Mr Rywin is accused of approaching the Agora media group
and soliciting a £10 million bribe in return for the right to the
lucrative licence of a private television satellite channel. The money
was supposed to have been earmarked for members of Mr Miller's
Government, ensuring that they would amend Poland's media ownership
laws in a positive way. Mr Rywin denies the charges. He faces three
years in jail and could implicate the Prime Minister to save his skin.

Mr Miller looks dangerously exposed. He runs a left-wing minority
Government and if it crumples the whole future of the Left in Poland
will be thrown into question.

Poles gave a shrug yesterday at the news. The authorities have been
making life easier for the owners of gambling slot machines, a
traditional means of laundering illicit cash. The concept of a
one-armed bandit seems to many Polish commentators to be a metaphor
for their society.

http://www.timesonline.co.uk/newspaper/0,,172-917396,00.html